Utility regulators see no need for Quail Brush power plant

Plans to build new power plants in San Diego and Otay Mesa appeared headed toward defeat or years-long delays, under two proposed rulings published late Tuesday night.

The natural gas generators are not needed for the time being despite an ongoing outage at the San Onofre Nuclear Generating Station, according to a draft decisions by California Public Utilities Commissioner Mark Ferron. He favored, however, approving a less substantial retrofit of an existing power plant at Escondido, citing the environmental benefits.

A separate proposed decision by Administrative Law Judge Halley Yacknin rejected moving forward with any of the three plants, directing San Diego Gas & Electric to line up a limited amount of new local power generation by 2018.

In anticipation of future energy needs for the region, San Diego Gas & Electric lined up 20-year agreements to buy power from the Quail Brush Generation Project, opposite State Route 52 from Mission Trails Regional Park, and the Pio Pico Energy Center, adjacent to an existing power plant in unincorporated Otay Mesa.

Critics of the proposed power plants say they would tie San Diego residents and businesses to additional fossil fuel resources for two decades, while diverting customer resources from other investments that could make the local grid more efficient, clean and responsive.

Commissioner Ferron found there is no need for the new local generation capacity until at least 2018, and then only if the Encina power plant at Carlsbad is retired without replacement. He did not rule out consideration of a renewed application at a later date.

"It would not be reasonable to pay for that excess capacity for four of the 20-year terms of the (power contracts) associated with the Pio Pico Energy Center and Quail Brush," Commissioner Ferron wrote. "Accordingly, we deny approval ... without prejudice to a renewed application."

Ferron also rejected SDG&E's assertions that the power plants were needed to offset fluctuations in energy production by wind, solar and other renewable energy installations.

Those challenging the utility’s request include the Sierra Club, the Natural Resources Defense Council and an alliance of six California environmental justice groups.

No decision on the matter is final until a vote of the five-member California Public Utilities Commission, and draft decisions still can be amended before consideration at a public meeting. A vote is at least 30 days away but has not yet been scheduled.

The Quail Brush plant faced significant local opposition. A zoning change to accommodate the plant was rejected by the San Diego City Council, while the California Energy Commission is still considering site applications. Without approval of the utilities commission, construction cannot go forward.